What Happens to Student Loans in Bankruptcy?
A San Francisco Bankruptcy Attorney discusses student loans in bankruptcy...
Often individuals contemplating whether to file bankruptcy wonder what happens with student loans in bankruptcy. It is not uncommon for student loan amounts to exceed $70,000 for individuals who have completed a four-year college, and even with deferred interest and payments, the minimum monthly payments often eat a large portion of an individual’s monthly income. Generally, student loans in bankruptcy are not dischargeable. An individual dealing with student loans in bankruptcy can try to persuade a court that the loans present an undue hardship either on the individual or dependent’s of the individual, although the chances of successfully doing so are rare.
Although filing bankruptcy will not discharge student loans, it can help the debtor better manage student loan payments. If a chapter 7 petition is filed and the debtor’s unsecured debt is discharged, that individual will be in a much better place to allocate payment solely to the student loans because no other credit card payments will be required. Similar with a chapter 13 case, once the repayment plan is completed, the debtor will likely be able to comfortably repay the loans.
While the student loans might still be viewed as a burden, interest rates on the loans are generally much lower than they are on credit cards, and after a successful bankruptcy discharge, no credit card payments will be required anymore.
If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Francisco Bankruptcy Attorneys. After you have spoken with one of our Bay Area bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!
